Understand the key differences between light, medium, and heavy industrial zones in Malaysia. Learn what type of factory suits your business needs and investment goals.
What Are the Differences Between Light, Medium, and Heavy Industrial Parks?
In Malaysia’s fast-growing industrial landscape, choosing the right factory location starts with understanding the type of industrial zoning:
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Light Industrial
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Medium Industrial
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Heavy Industrial
Each zoning category is defined by the type of business activities, infrastructure needs, environmental impact, and regulatory requirements. Selecting the wrong zone may lead to operational limitations or compliance issues.
1. Light Industrial Zones – Clean, Low Impact Production
Typical Activities:
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Packaging, printing, food processing
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Electronics assembly
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Cold storage and logistics
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Distribution centers
Factory Specs:
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1–3 storey terrace or semi-D factories
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Built-up: 3,000 – 20,000 sq.ft.
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Power supply: 100–300 amp (3-phase)
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Floor loading: 1–3 tons/m²
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Suitable for clean, low-noise industries
Common Locations:
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Puchong, Kota Kemuning, Bukit Jelutong, Subang, Sungai Buloh
2. Medium Industrial Zones – Moderate Scale Manufacturing
Typical Activities:
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Light engineering
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Plastic injection molding
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Auto parts production
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Food & beverage manufacturing (non-hazardous)
Factory Specs:
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Detached factories or ramp-up warehouses
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Built-up: 20,000 – 100,000+ sq.ft.
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Power supply: 300–800 amp
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Floor loading: 2–5 tons/m²
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May include crane-ready structures or mezzanines
Common Locations:
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Telok Gong, Kapar, Shah Alam Seksyen 26, Meru, Semenyih, Balakong
3. Heavy Industrial Zones – Large-Scale, High-Impact Operations
Typical Activities:
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Steel, metal works, shipbuilding
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Chemical & oil processing
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Heavy machinery, recycling, cement production
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Dangerous goods storage
Factory Specs:
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Purpose-built detached factories on 1–50 acres
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Built-up: 50,000 – 300,000+ sq.ft.
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Power supply: 800–2,000 amp (with TNB substation)
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Floor loading: 5–10 tons/m²
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Higher buffer zones due to noise, emissions & safety risk
Common Locations:
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Pulau Indah (Westport), Northport, Rawang, Nilai, Senawang
Why Does This Classification Matter?
1. Government Zoning Compliance
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DBKL, MBSA, MPKJ, MPAJ all regulate industrial zone use
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Mismatch can lead to rejection of business license (lesen premis)
2. Infrastructure Compatibility
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Power, water, road width, and fire requirements vary
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Some industries need TNB substations, cranes, gas piping
3. Future Resale & Rental Value
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Buyers/tenants want zoning that matches their industry
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Proper classification ensures easier exit or lease
Which One Should You Invest In?
Type | Best For | Entry Price | ROI Potential |
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Light | SMEs, logistics, clean ops | RM200–450 psf | Medium |
Medium | Local manufacturers, auto parts | RM180–380 psf | High |
Heavy | Exporters, steel/foundry/fuel ops | RM80–250 psf | High (if niche) |